The Corporate Transparency Act
You need to comply if you own an LLC or Corporation.
What's the Scoop?
If you own an LLC or corporation, there is a new mandatory government filing required by the Corporate Transparency Act. You likely need to file and report who owns and controls the entity (the Beneficial Ownership Information Report, or BOIR) by year end 2024 or you will be fined.
Can Woods Law Group Help?
Yes! Should you require any assistance determining whether your entity is required to file or you need help completing the submission, please do not hesitate to contact us as we can help for a fee starting at $500. Our team of experienced attorneys is here to provide you with the guidance and support you need to navigate this regulatory landscape effectively, ensuring that your company remains compliant with all relevant regulations and avoids any potential legal risks. Call us at 480-360-1776 now for help.
Need More Information?
What is the Corporate Transparancy Act?
The Corporate Transparency Act was enacted in 2021, and took effect this year, with the primary objective of enhancing corporate transparency and combating financial crimes, including money laundering, terrorism financing, and other illicit activities. The CTA represents a significant shift in U.S. anti-money laundering regulations, introducing new obligations for certain entities regarding the disclosure of beneficial ownership information.
Under the provisions of the CTA, certain “reporting companies” are required to disclose detailed information about their beneficial owners to the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of the Treasury. A reporting company, as defined by the CTA, includes corporations, limited liability companies (LLCs), and other similar entities that are formed or registered to do business in the United States, with various exceptions (and exceptions to the exceptions).
Specifically, reporting companies are required to provide the following information about their beneficial owners in the BOI report:
- Full legal name
- Date of birth
- Current residential and business address
- Unique identifying number from an acceptable identification document (e.g., driver’s license or passport), as well as uploading an image of the identification document.
- Information about the reporting company, including legal name, trade name, and EIN.
The term “beneficial owner” is broadly defined under the CTA and generally includes individuals who directly or indirectly own or control 25% or more of the ownership interests in the reporting company, as well as individuals who exercise significant control over the company’s management or policies.
What do you need to do now?
It is crucial that you analyze your business entity(ies) and determine if it falls within the scope of entities required to file a BOI report under the Corporate Transparency Act. If so, you must file before the end of the year. Failure to comply with this requirement may result in significant penalties, including civil monetary penalties of up to $500 per day (up to a maximum of $10,000) for non-compliance and potential criminal liability for knowingly providing false or fraudulent information.
Therefore, we strongly advise you to take immediate action to gather the necessary information and file the BOI report. Here is the link to learn more and to file if you want to do it yourself: https://www.fincen.gov/boi
Ongoing Obligations
The initial BOIR is just the beginning – you have ongoing obligations. You must update the BOI filing within 30 days of any filed information changing (i.e. address or ownership or control changes, etc.).
